Chinese Firms Control Over 80% of Zimbabwe's Lithium Production as Industry Eyes US$1 Billion Exports

HARARE — Chinese investors now control more than 80% of Zimbabwe's lithium production, cementing Beijing's dominance over one of the country's most strategic mining sectors as the industry recovers from a global price slump that cost more than 1,000 jobs.

The disclosure was made by Lithium Producers Association of Zimbabwe (LPAZ) chairman Innocent Rukweza, who said Chinese-owned and Chinese-backed companies now dominate the country's lithium mining, processing and export value chain.

"More than 80% of production is coming from Chinese-owned or Chinese-partnered projects," Rukweza said in a recent interview.

"In fact, of all operational projects, they are effectively running production."

Chinese companies have invested billions of dollars in Zimbabwe's lithium sector, acquiring major mines and building processing plants as part of Beijing's global strategy to secure supplies of critical minerals needed for electric vehicle (EV) batteries and renewable energy storage. Zimbabwe, which holds Africa's largest known lithium reserves, has attracted significant investment from Chinese mining giants, including Prospect Lithium Zimbabwe (PLZ), Bikita Minerals, Sabi Star Lithium Mine and Arcadia Lithium Mine, making China the dominant player across the sector.

According to Rukweza, Chinese firms now control most operational lithium assets through outright ownership or joint ventures, giving them substantial influence over the entire supply chain.

"It is very much a Chinese phenomenon. They went through the whole supply chain," he said.

Zimbabwe's lithium boom slowed sharply after global lithium prices fell from record highs reached during the electric vehicle surge. The decline forced several producers to cut production, postpone expansion projects and reduce their workforce.

"When prices went down, we lost more than 1,000 direct jobs," said Rukweza.

"Companies had to lay off workers and some projects were delayed because of viability concerns."

Despite the downturn, the industry expects a strong rebound as global demand for battery minerals gradually recovers.

The lithium industry has attracted approximately US$2 billion in investment, with projects worth another US$1.5 billion currently under development. Export earnings are forecast to rise from about US$500 million last year to US$1 billion in 2026 as more beneficiation plants begin operating. Zimbabwe banned exports of raw lithium ore in 2022 to encourage local value addition, forcing mining companies to process minerals before export.

Rukweza said the policy has already transformed export earnings.

"From about US$60 million in raw exports, we moved to more than US$500 million annually, and we are now targeting US$1 billion."

The next phase of the industry's development is focused on producing lithium sulphate, a higher-value intermediate product used in battery manufacturing. One lithium sulphate plant is already operational, while at least six additional beneficiation projects, including concentrators and sulphate plants, are expected to come online from 2027.

While new entrants such as Bravura Zimbabwe and the state-backed Sandawana lithium project are expanding production, Chinese companies remain the dominant force in Zimbabwe's lithium sector. Analysts say the concentration of ownership raises important questions about Zimbabwe's long-term control over one of its fastest-growing export industries, particularly as global demand for electric vehicles and clean energy technologies continues to increase.

Rukweza also cautioned that the sector remains vulnerable to international commodity prices.

"Below US$17,000 to US$18,000 per tonne, it becomes very difficult to operate," he said, referring to lithium carbonate prices.

Chinese investment in Zimbabwe lithium